Monopolistic competition and oligopoly are alike in
the number of firms is approximately the same
in both cases.
the kinked-demand analysis is applicable in
strong mutual interdependence exists among
firms in both market models.
nonprice competition is common to both.
Product differentiation is present in:
purely competitive markets only.
monopolistically competitive markets
oligopolistic markets only.
both monopolistically competitive and
Under which of the following market structures will
the long-run equilibrium price be equal to marginal
In which of the following industry structures is the
entry of new firms the most difficult?
The purely competitive market model is portrayed in
the above figures by:
both Figures B and D.
none of the figures.
Refer to the above figures. We would expect industry
entry and exit to be relatively easy in:
Figure A only.
Figure C only.
both Figures A and C.
all of the figures.
Refer to the above figures. Both allocative and
productive efficiency are being realized in:
all four figures.
Figures B and D.
Figure D only.
Figure B only.
Refer to the above figures. Product differentiation
may be present in:
both Figures C and D.
Refer to the above figures. Long-run economic profits
are most likely to occur in:
Figures A and B.
Figures A and C.
Refer to the above figures. Industry entry is likely
to be most difficult in: